Are You Really Selling Solar?

In the solar energy industry, success isn’t just about selling panels or solar energy systems — it’s about delivering solutions that address real business challenges. Shifting from this simple view to a deeper understanding of what truly matters to clients transformed how we approached our business.

Moving Beyond Traditional Approaches

When I first took on the challenge of leading a new solar rooftop development operation in 2016, it became clear that we needed to shift away from one-off projects toward a model focused on long-term, recurring revenue through solar leasing and Corporate Power Purchase Agreements. Achieving this goal required alignment between our engineering and business development teams.

Three weeks into the role, our team held a workshop to kickstart this alignment. The discussion opened with a simple, yet crucial question: “What are we selling here?

The first response was predictable: “We’re selling solar panels.” While common in the industry, this view reduces solar to a commodity business. Competing solely on volume and price traps you in a race to the bottom.

The next response was more refined: “We’re selling solar energy systems.” This approach adds layers of value beyond the panels themselves. But even this falls short of addressing the bigger picture. Solar systems alone don’t directly address the challenges our clients face.

Shifting the Perspective

The breakthrough came when we reframed the question. What are our clients actually trying to achieve? They’re not just interested in solar panels or solar systems — they want financial outcomes. For most rooftop clients, this boils down to one primary goal: cost savings. Their investment in solar is driven by the need to reduce operational expenses and stay competitive.

This realization shifted our entire approach. Suddenly, it wasn’t just about deploying solar systems; it was about delivering solutions that maximized electricity cost savings. Whether it meant optimizing designs for space constraints or balancing efficiency with cost-effectiveness, every decision became laser-focused on delivering financial benefits. This clarity allowed us to evolve from being just a solar provider to a strategic partner helping clients achieve their operational and financial goals.

The Bigger Picture

As we refined our approach, another key insight emerged. While rooftop owners were our immediate clients, they weren’t the only stakeholders we needed to consider. Behind every successful solar project lies a network of institutional investors—like infrastructure funds and pension funds — who view these projects as long-term financial assets.

For these investors, the appeal lies in stable, predictable cash flows over decades. This shift in perspective meant we had to think beyond the rooftop clients and add what our ultimate partners — the investors — truly valued. For them, projects needed to be derisked, creditworthy, and financially stable.

This understanding brought creditworthiness and financial scrutiny to the forefront of our project selection process. Not every rooftop client would pass the due diligence required by institutional investors, so it became essential for us to identify early on which clients were truly financeable. We couldn’t afford to allocate our resources to projects that wouldn’t meet investor criteria. This meant our business development team needed to be equipped to spot potential red flags from the very beginning, allowing us to prioritize projects that aligned with both client needs and investor expectations.

Bridging the Two Worlds

The real value for a solar developer lies in aligning the goals of rooftop clients with those of institutional investors. Rooftop clients seek financial savings and operational efficiencies, while institutional investors demand low-risk, long-term assets with stable returns. By understanding and catering to both these needs, we positioned ourselves as more than just a solar developer — we became key enablers of win-win sustainable solutions.

Our strategies had to seamlessly bridge these two worlds. Whether it was selecting projects based on client creditworthiness or designing systems that met clients’ expectations, every decision was aligned with delivering value to both sides. This approach ensured that our business remained competitive and sustainable over the long term.

The Power of Clarity

Understanding what you’re really selling—and who you’re selling it to—transforms how you approach the solar business. By focusing on both the needs of rooftop clients and the investment criteria of institutional partners, you can create solutions that deliver lasting value to all stakeholders. It’s not just about technology; it’s about clarity of purpose and strategic alignment. This clarity became the cornerstone of our strategy, driving innovation and success across all our projects. By doing so, we positioned ourselves as trusted partners in the evolving landscape of renewable energy.